GE Vernova drops 8.6% on Sell rating

GE Vernova shares fell 8.6% to $874.85 on Monday, 14 September. The retreat followed a report from Barron's stating that GLJ Research analyst Gordon Johnson initiated coverage on the power-equipment maker with a Sell rating. His target price of $470 sits roughly 46.9% below the market level.

Industrial demand remains active for the company. Its second-quarter filing showed 116 gigawatts across gas-equipment backlog and slot reservations. That total divides into 53 gigawatts of backlog and 63 gigawatts of slot reservations.

Reservations account for about 54.3% of that combined gas-equipment pipeline. GE Vernova converted 10 gigawatts of reservations into firm orders during the second quarter. In addition, the firm booked more than $5 billion of data-center orders year to date.

The business also faces operational screening hurdles. GuruFocus assigns GE Vernova a GF Score of 15 out of 100, where financial strength ranks as the strongest area while profitability, growth, GF Value, and momentum show lower readings at an $884.30 comparison price point.